Friday, September 14, 2012

Startup Companies and Job Creation

Tim Kane, at the Hudson Institute, has a new paper
out with a simple title: “The Collapse of Startups in Job Creation”.
His paper is basically a slightly politicized version of the charts
put out by the Bureau of Labor Statistics last month, under the
headline “Entrepreneurship and the U.S. Economy”. The first two charts
are particularly striking. The first one looks at the number of startups
in America — companies less than one year old.

This shows a reasonably steady rise in entrepreneurship from 1994 to
2006, then a collapse as the housing bubble bursts, and — most
worryingly of all — no recovery at all after the recession ends.
Instead, we have significantly fewer startups right now than we did even
at the depths of the recession....MORE